1MDB and its 10 subsidiaries today withdrew their lawsuit against Singaporean national Shabnam Naraindas Daswani over the alleged purchase of luxury items worth more than US$346 million, allegedly acquired using misappropriated 1MDB funds.

Shabnam (also known as Natasha Mirpuri) was initially named as a co-defendant in the suit alongside Rosmah Mansor, the wife of former prime minister Najib Abdul Razak.

However, Rosmah remains a...